CITY COUNCIL MINUTES
REGULAR MEETING
JANUARY 5, 2009
The Meriden City Council’s regular meeting of January 5, 2009 was convened at 7:00 p.m. by Mayor Michael S. Rohde. Keith Gordon led the Council in the salute to the flag and Matthew C. Dominello, Sr. offered the invocation. The Clerk called the roll. Present: Dante’ Bartolomeo, Brian Daniels, Matthew Dominello, Keith Gordon, Brian Kogut, George McGoldrick, Hilda Santiago, Walter Shamock, John Thorp and Trevor Thorpe.
EXCUSED: David Salafia and Anthony Tomassetti were away on business.
ATTENDANCE AT PUBLIC COMMENT: Dante’ Bartolomeo, Brian Daniels, Matthew Dominello, Keith Gordon, Brian Kogut, George McGoldrick, Walter Shamock, John Thorp and Trevor Thorpe.
OTHERS IN ATTENDANCE: Corporation Counsel Michael P. Quinn.
Matthew Dominello, made a motion, seconded by Keith Gordon, to invoke Rule 20 to bring forth a Consent Calendar and to approve the minutes of December 15, 2008 and to adopt a Consent Calendar as previously prepared. Motion carried unanimously.
CONSENT CALENDAR
Item 1. Presented by Dante’ Bartolomeo, by request.
Whereas, the Britannia Street storm drain pipe conveys storm water runoff from Britannia Street, Locust Street, Tremont Street, Sherman Avenue, Cambridge Street and the Jack Barry Little League Complex to an outfall in Clark Brook at Center Street; and
Whereas, this storm drain pipe is more than 100 years old; and
Whereas, the recent pipe collapse at Britannia and Warren Streets cost more than $150,000 to repair; and
Whereas, the lining of this pipe with an injected PVC liner will extend the life of the pipe and help to prevent future problems; now, therefore,
Be It Resolved, an appropriation in the amount of $103,000 is authorized to install a PVC liner to rehabilitate the 500± linear foot long section of storm drain pipe in Britannia Street from Warren Street west towards Center Street and said sum shall be included in the 2008-2009 CIP.
Referred to Public Works and Parks & Recreation and Finance.
Item 2. Presented by Hilda E. Santiago.
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WHEREAS, the State of Connecticut Department of Public Health has received federal funds for the purpose of bioterrorism response preparedness; and,
WHEREAS, the State of Connecticut Department of Public Health is offering the City of Meriden Health Department an amount not to exceed $65,000 for the period 8/31/08 through 8/30/09 to “upgrade state and local public heath jurisdictions preparedness for and response to bioterrorism, other outbreaks of infectious disease, and other public health threats and emergencies ; and,
WHEREAS, the City of Meriden desires funds to coordinate and facilitate local health planning with state efforts concerning preparedness for a bioterrorism event; and,
WHEREAS, the receipt of this grant has no financial impact on the City’s General Fund.
THEREFORE BE IT RESOLVED, that Beth Vumbaco, R.N., M.S., Director of the Department of Human Services, Division of Health, is hereby authorized and directed to enter into contract for a grant from the State of Connecticut Department of Public Health in an amount not to exceed $65,000; and,
THEREFORE BE IT FURTHER RESOLVED, that Beth Vumbaco, R.N., M.S., Director of Health and Human Services, is hereby authorized to sign such application and that the Division of Health is hereby designated to administer said program and all activities will be carried out under the direction of Beth Vumbaco, R.N., M.S., Director of Health and Human Services.
Adopted.
Item 3. Presented by Anthony D. Tomassetti, Keith Gordon, Matthew C. Dominello, Sr., Trevor Thorpe, John J. Thorp.
WHEREAS, the US Department of Homeland Security-Emergency Preparedness and Response Directorate has informed the City that it has received a grant to procure new radio equipment for Fire Fighters (Agreement # EMW-2008-FO-04129)
WHEREAS, the equipment will improve communications and safety for Fire Fighters and City residents, and
WHEREAS, the amount of said grant is $249,821; and
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WHEREAS, the federal share is 80% or $199,857 and the City share is 20% or $49,964 for said grant; and
WHEREAS, grant funding is available from December 11, 2008 through December 10, 2009.
NOW, THEREFORE, BE IT RESOLVED, by the City Council that the City Manager, Lawrence J. Kendzior, is hereby authorized to submit and execute all required grant documents and attendant materials; and
BE IT FURTHER RESOLVED, that the City Manager is authorized to execute and submit any other supplemental materials as required; and
BE IT FURTHER RESOLVED, that an appropriation of $49,964 in the 08-09 Capital Improvement Plan is hereby made for said grant.
Adopted.
Item 4. Presented by Dante’ Bartolomeo, by request
Whereas, North End Field, currently used by the Jack Barry Little League, has experienced problems with poor drainage; and
Whereas, the City would like to explore options to reconfigure the fields or to move the League activities to Washington Park; now, therefore,
Be It Resolved, that an appropriation in the amount of $7,000 from the Contingency Fund is authorized to obtain conceptual layouts for the changes of use or reconfiguration of the recreational facilities at North End Field and Washington Park.
Referred to Public Works and Parks & Recreation and Finance.
Item 5. Presented by Keith Gordon, by request.
Whereas, the Connecticut Department of Emergency Management and Homeland Security has informed the City that it is eligible to receive upwards of $15,000.00 in Emergency Management Performance Grant (EMPG) program funding for Fiscal Year 2009 which began on October 1, 2008; and
Whereas, the funding will fund the expenses of the City Emergency Management Operations Center exercise, personnel training, and equipment (ETE) program; now, therefore,
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Be It Resolved, that City Manager Lawrence J. Kendzior, be and hereby is authorized to act on behalf of the City of Meriden in executing a Memorandum of Understanding with the State of Connecticut, Department of Emergency Management and Homeland Security, for participation in the FY 2009 EOC Equipment, Training and Exercise (ETE) Program.
Adopted.
Item 6. Presented by Brian F. Kogut, by request.
A RESOLUTION AMENDING A RESOLUTION MAKING APPRO-PRIATIONS AGGREGATING $11,851,500 FOR VARIOUS PUBLIC IMPROVEMENTS AND EQUIPMENT IN THE 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND AUTHORIZING THE ISSUANCE OF $11,851,500 BONDS OF THE CITY TO MEET SAID APPROPRIATIONS AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE
RESOLVED:
Section 1. Section 1 of the Resolution entitled “A Resolution Making Appropriations Aggregating $11,851,500 For Various Public Improvements And Equipment In The 2008/2009 Capital Improvement Program And Authorizing The Issuance Of $11,851,500 Bonds Of The City To Meet Said Appropriations And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, adopted by the Common Council on June 16, 2008, as amended (the “GPIB #64 Resolution”), is hereby further amended by adding the following new appropriation:
“Britannia Street - Repair and Rehabilitate Storm Drain (Acct No. 0401-7362-983) - $103,000”
thereby increasing the total appropriation therein by $103,000 from $14,762,321 to $14,865,321.
Section 2. Section 2 of the GPIB #64 Resolution is amended by increasing the total amount of bonds of the City authorized to be issued therein by $49,964 from $14,472,464 to $14,575,464.
Section 3. Section 6 of the GPIB #64 Resolution shall be applicable to the appropriation added by this amendment as of the date of adoption of such amendment.
Referred to Finance for Public Hearing.
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Item 7. Presented by Brian F. Kogut, by request.
A RESOLUTION AMENDING A RESOLUTION MAKING APPRO-PRIATIONS AGGREGATING $11,851,500 FOR VARIOUS PUBLIC IMPROVEMENTS AND EQUIPMENT IN THE 2008/2009 CAPITAL IMPROVEMENT PROGRAM AND AUTHORIZING THE ISSUANCE OF $11,851,500 BONDS OF THE CITY TO MEET SAID APPROPRIATIONS AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE
RESOLVED:
Section 1. Section 1 of the Resolution entitled “A Resolution Making Appropriations Aggregating $11,851,500 For Various Public Improvements And Equipment In The 2008/2009 Capital Improvement Program And Authorizing The Issuance Of $11,851,500 Bonds Of The City To Meet Said Appropriations And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, adopted by the Common Council on June 16, 2008, as amended (the “GPIB #64 Resolution”), is hereby further amended by adding the following new appropriation:
“Fire Department – Radio Equipment (Acct. No. 0401-7364-982) - $249,821”
thereby increasing the total appropriation therein by $249,821 from $14,512,500 to $14,762,321.
Section 2. Section 2 of the GPIB #64 Resolution is amended by increasing the total amount of bonds of the City authorized to be issued therein by $49,964 from $14,422,500 to $14,472,464.
Section 3. Section 6 of the GPIB #64 Resolution shall be applicable to the appropriation added by this amendment as of the date of adoption of such amendment.
Referred to Finance for Public Hearing.
Item 9. Claims submitted against the City by Jacqueline Winslow, 281 New Hanover Avenue, Meriden, CT; Wieslaw Margol, 38 Woodycrest Road, Meriden, CT; Edyn Zapata, 38 Sunbright Road, North, Meriden, CT; Viswajit Ranganathan, 345 Knob Hill Road, Meriden, CT; Diana DeManche, 267 Johnson Avenue, Meriden, CT; Michael Gagnon, 40 Eastview Terrace, Meriden, CT were referred to Legal and Safety & Risk.
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Item 16. Commission for Persons with Disabilities Meeting Minutes of November 13, 2008 were filed with the City Clerk.
Item 17. Advisory Board on Aging Meeting Minutes of December 5, 2008 were filed with the City Clerk.
Item 18. Meriden Police Department Monthly Report for November 2008 were filed with the City Clerk.
Item 19. Flood Control Implementation Agency Meeting Minutes of September 2, 2008 were filed with the City Clerk.
Item MNO20. Presented by George E. McGoldrick, by request.
Whereas, the purpose of the CIDEWALK Program is to encourage property owners to repair or replace deteriorated sidewalks adjacent to their individual properties by offering City assistance in paying for a portion of the cost; and
Whereas, sidewalks in good repair make pedestrian travel easier and safer, make neighborhoods more attractive, encourage property owners to make other improvements to their property, increase property values and reduce potential city liability for injuries; and
Whereas, the CIDEWALK Program reduces the number of sidewalks the City undertakes to repair at its own expense and results in the repair or replacement of deteriorated and dangerous sidewalks that may not be targeted for major repair work by the City in the near future; and
Whereas, a revised CIDEWALK policy is needed to increase participation in the program, to fulfill program objectives and to ensure uniform application of the program; now, therefore,
Be It Resolved, that the attached CIDEWALK Program Policies are hereby approved.
CIDEWALK PROGRAM
EXISTING PROGRAM AND PROPOSED CHANGES
The purpose of the CIDEWALK program is to encourage property owners to repair or replace deteriorated sidewalks adjacent to their individual properties by offering City assistance in paying for a portion of the cost. Sidewalks in good repair make pedestrian travel easier and safer, make neighborhoods more attractive, encourage property owners to make other improvements to their property, increase property values and reduce potential city liability for injuries. The CIDEWALK program also reduces the number of sidewalks that the City undertakes to repair at its own expense and
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results in the repair or replacement of deteriorated and dangerous sidewalks that may not be targeted for major repair work by the City in the near future. It is therefore in the City’s interest to encourage property owners to take advantage of the program.
In the past both residential and non-residential property owners have been eligible for the program. Applications have been approved on a first come, first served basis. However, residential and non-residential properties have been deemed ineligible if planned renovations or construction required approval by the Planning Commission and the Commission required new sidewalks as a part of that approval. Not all program criteria have been written. Exceptions to the usual policy have been submitted to the City Council for approval.
The new policy below proposes changes aimed at increasing participation in the program in order to fulfill the program objective of repairing or replacing sidewalks which are defective or in poor repair and reducing the policy to written form so that it may be applied uniformly.
- Residential properties located anywhere in the City shall be eligible for the CIDEWALK program. Properties which are single to four family properties as determined by assessment data shall be considered residential for the purposes of the program. The City will pay 65% of the cost of repair or replacement to the “cost cap” for an adjoining residential property which is determined by the Public Works Department to be in need of repair or replacement. Residential property owners will pay 35% of the replacement cost to the “cap.” The residential owner will have to pay 100% of all costs above the “cap.” Any work not related to the sidewalk work approved by the CIDEWALK Program will be paid at 100% by the owner.
- The CIDEWALK Target Area shall be the Inner District Tax Area plus West Main Street to Sylvan Avenue, South Broad to Gypsy Lane and Green Road, and East Main Street to East Main Street to Dexter and Pearl Street. The Public Works Department shall prepare a map of this area.
- All non-residential properties located in the target area shall be eligible for the CIDEWALK program. The City will pay 50% of the sidewalk repair or replacement cost replacement to the “cost cap” of any sidewalk determined by the Public Works Department to be in need of repair. The property owner will pay the other 50% of the cost to the “cap.” . The non-residential owner will pay 100% of all costs above the “cap.” Any work not related to the sidewalk work approved by the CIDEWALK Program will be paid at 100% by the owner.
- Planning Commission approval shall not be a criterion in determining eligibility. Only sidewalks determined to be in need of repair or replacement shall be considered for the program. The program is not intended for installation of new sidewalks. Property owners must be current in payment of all taxes, assessments and fees due to the City.
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- The program shall be uniformly administered by the Neighborhood Preservation Office or in such other manner as the City Manager may from time to time determine. Administration of the program shall be in accordance with procedures approved by the City Manager which comply with applicable city regulations.
Referred to Economic Development, Housing & Zoning.
END OF CONSENT CALENDAR
Item A. Mayor Rohde invited Deputy Mayor Dominello and Minority Leader Walter Shamock to join him in the ellipse to receive The Above and Beyond Award for the City. The award was presented by Karl Dyer, Program Director and Wayne Travers, Executive Director of the Employer Support of the Guard and Reserve Division of the National Guard.
Item 8. Presented by George E. McGoldrick, by request.
WHEREAS, Title III, Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes, of the Housing and Economic Recovery Act of 2008 (HERA) allocated $25,043,385 in federal funds to the State of Connecticut to be considered as Community Development Block Grant Funds (CDBG) for the redevelopment of abandoned and foreclosed upon homes and residential properties ( the Neighborhood Stabilization Program or NSP); and
WHEREAS, pursuant to Chapter 127c, and Part VI of Chapter 130 of Connecticut General Statutes, the Commissioner of the State of Connecticut Department of Economic and Community Development is authorized to disburse such federal monies; and
WHEREAS, the State of Connecticut’s 2008 Action Plan Substantial Amendment requires that each sub-recipient (as that term is defined in the Substantial Amendment) submit a Local Action Plan (as that term in defined in the Substantial Amendment) to the State of Connecticut, Department of Economic and Community Development (State or DECD) in order to receive funds allocated to said subrecipient; and
WHEREAS, it is desirable and in the public interest that the City of Meriden submit a Local Action Plan to the State in order to make funding commitments using CDBG grant NSP funds for activities associated with the implementation of the Local Action Plan, including the disbursement of such funds.
NOW, THEREFORE, BE IT RESOLVED, that it is cognizant of the conditions and prerequisites for the state financial assistance imposed by The Connecticut General Statutes as well as 24 CFR Part 58 and agrees that all applicable State and Federal requirements will be satisfied prior to the commitment and /or expenditure of NSP funds, as applicable.
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BE IT FURTHER RESOLVED, that the filing of a Local Action Plan as a condition of State financial assistance by the City of Meriden is hereby approved and that Lawrence J. Kendzior, City Manager, is directed to execute and file such Local Action Plan with DECD, to provide such additional information, to execute such other documents as may be required, to execute an Assistance Agreement with the State of Connecticut for State financial assistance if such an agreement is offered, to execute any amendments, decisions, and revisions thereto and all other documents required by the State or HUD for the
receipt of CDBG grant NSP funds as may be necessary to carry out the intent of this resolution and in accordance with all applicable law, to administer funds as required, and to act as the authorized representative of the City of Meriden.
BE IT FURTHER RESOLVED, that the term “contractor” shall refer to the resolving municipality herein. The contractor agrees and warrants that in the performance of the contract such contractor will not discriminate or permit discrimination against any person or group of persons on the grounds of race, color, religious creed, age, marital status, national origin, ancestry, sex, mental retardation or physical disability, including, but not limited to, blindness, unless it is shown by such contractor that such disability prevents performance of the work involved, in any manner prohibited by the laws of the United States or of the state of Connecticut. The contractor further agrees to take affirmative action to insure that applicants with job-related qualifications are employed and that employees are treated when
employed without regard to their race, color, religious creed, age, marital status, national origin, ancestry, sex, mental retardation, or physical disability, including, but not limited to, blindness, unless it is shown by such contractor that such disability prevents performance of the work involved. The contractor agrees and warrants that in the performance of the contract such contractor will not discriminate or permit discrimination against any person or group of persons on the grounds of sexual orientation, in any manner prohibited by the laws of the United States or of the state of Connecticut, and that employees are treated when employed without regard to their sexual orientation.
CITY OF MERIDEN LOCAL ACTION PLAN
FOR CONNECTICUT’S NEIGHBORHOOD STABILIZATION PROGRAM
EXECUTIVE SUMMARY-JANUARY 5, 2009
Background
The Housing and Economic Recovery Act of 2008 (P. L. 110-289), signed into law on July 30, 2008, provides $3.9 billion in Community Development Block Grants to states and localities to buy foreclosed homes standing empty, rehabilitate foreclosed properties, and stabilize the housing market. The program is known as a Neighborhood Stabilization Program (NSP). Connecticut’s share of the federal program $25,043,385. The State has allocated $1,785,000 to Meriden under this program.
Accessing the NSP Funds
To access the funds, City of Meriden must develop a Local Action Plan outlining its plan to utilize its allocated share of the federal funding. The Local Action Plan is due January 20, 2009. In the Local Action Plan, the City must outline all of the programs that it intends to implement and how it will meet all applicable regulations. Purchase, rehabilitation and resale of vacant, foreclosed homes must be the primary goal of the program. Some of the funds may also be spent on demolition and other activities. The City must establish target neighborhoods in which the funds will be spent. Efforts must focus on
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neighborhoods that have a chance to succeed with the use of federal funds. All funding must be drawn down and allocated within 18 months.
Target Areas
To determine the target geographic areas of greatest need, the City analyzed several data sources, including foreclosures, subprime lending statistics, demographics, recorded home sales and the current inventory of blighted properties. In summary, the City found that from July 2007 through December 2008, 167 properties were foreclosed. 28% of the foreclosed properties were resold as of December 1, 2008.
A high concentration of vacant, unsold, foreclosed properties is concentrated in three inner-City Meriden neighborhoods: South Colony near Factory H, Downtown east and west of Colony Street, and City Park. The City’s analysis of the available data indicates that these geographic areas of are in the greatest need of investment within Meriden using NSP funds.
Implementation of the Local Action Plan
Over the next 18 months, the City intends to utilize $1,785,000 in NSP funds to stop the accumulation of foreclosed properties and the associated neighborhood destabilization by completing targeted demolition of blighted properties in concert with the acquisition, rehabilitation and resale of foreclosed homes in the three target areas. Federal funds will be used to acquire, rehabilitate and resell five to seven homes that have been foreclosed. Federal funds will also be used to demolish three or more vacant, blighted properties targeted for demolition due to its detrimental impacts on the neighborhood. Future funding rounds will be used to purchase, rehabilitate and resell three to five additional foreclosed properties and to demolish one to two additional blighted structures. The program will be implemented by jointly by the Office of
Community Development, the Housing Code Division and the Neighborhood Preservation Program office as well as one or more several non-profit partners.
Keith Gordon, made a motion, seconded by Matthew Dominello, to waive the reading and adopt. Mayor Rohde asked with the consent of the Council to invite Juliet Burdelski, our Grants Administrator to come forward and explain this project. The federal government has made substantial dollars available to Connecticut municipalities to help with the home foreclosure crisis that we have in Meriden and throughout the country. We have been allotted somewhere in the neighborhood of $1.8 million to assist those challenges that we face here in Meriden. Ms. Burdelski has been working on a program to use some of our existing programs that are already in place with the additional dollars to help families stay in their homes or be first time homebuyers.
Ms. Burdelski stated this summer the federal government passed the Housing and Economic Recovery Act which is providing almost $4 billion nationwide to cities to help ease the foreclosure crisis. This program is run in the State of Connecticut through the Department of Economic and Community Development. Under their rules the state has allocated $1.78 million to the City of Meriden. To access the funds we must develop a local action plan outlining how we are proposing to use these allocated federal funds. The action plan is due back to the State Department of Economic and Community Development by January 20th, 2009. In the plan we must outline how we intend to allocate those dollars. The primary goal of the plan is how we intend to purchase and rehabilitate homes that have been through
foreclosure, meaning homes that are bank owned in Meriden. Some of the funds may be spent on demolition of blighted properties and other activities. We have to as a part of our planning
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process establish targeted neighborhoods. Again, we have to focus the use of these funds in areas that have had the most severe impacts from the foreclosure crisis and also effects of subprime or risky lending practices. All of the funding must be drawn down by the City within 18 months. So both the state and the federal government are considering this almost an emergency allocation of community development block grant funds in order to alleviate the foreclosure crisis. To determine the target areas in Meriden staff has analyzed several data sources; foreclosures, subprime lending, demographics, income levels, recorded home sales and also the current inventory of blighted properties. The city found that from July 1, 2007 through December 2008, 167 properties have been foreclosed upon. Just 28% of
those homes have been resold. We have about 100 properties in our data base that are abandoned, vacant and foreclosed homes. A high concentration of these homes are found in three neighborhoods which are targeted for programs under the CDBG program. We have South Colony area around Factory H. We have the downtown neighborhoods around the HUB and east and west on Colony Street and also City Park. Our analysis shows that we can make real inroads with the foreclosure crisis and also home values in these areas if we target the use of NSP or Neighborhood Stabilization Program funds in this area.
Again, the city’s plan as outlined in our local action plan would target the demolition of blighted properties in concert with the rehabilitation and resale of foreclosed homes in these three target areas. We believe that with these funds we can acquire three or more blighted properties and rehabilitate, acquire and resell 5-7 homes that have been foreclosed. If we spend our funds in accordance with state and federal guidelines we would have additional funds coming back to the city. We believe we can continue to demolish 1-3 blighted properties and have an additional 5 foreclosed homes for resale. The program will be implemented by the City Manager’s Office, the Housing Code Division and also by the Neighborhood Preservation Program Office. We will also be seeking private non-profits to help us
implement the program. We have an allocation of administrative costs to do that.
This is an application process and the next step is this resolution would authorize the City Manager to submit the local action plan as is required by DECD. DECD may have additional changes or require additional information for the city. Once they do sign off on it we would have an agreement with DECD to implement the program and we could start immediately. We anticipate that we can begin starting to use the funds in February 2009. Again, that is the overview. We have a very detailed plan and maps that have been generated by our GIS department and data analysis.
Mayor Rohde stated that this has been on an extremely fast track. We were notified of a meeting in Rocky Hill that Burdelski and he went to a couple of months ago. At that time there was no allocation decision relative to how Connecticut’s money would be used. In fact, some of the big cities were saying it should all come to New Haven, Bridgeport and Hartford because they felt they needed it the most. Those mid-size cities including Meriden said wait a minute. This money is for the entire State of Connecticut. We also have major issues with over 100 foreclosures and many more in the pipeline and we should be up for consideration. As it turned out they did select Meriden as one of the cities to be eligible to the tune of about $1.8 million. That came fairly recently and once that
happened we had to come back to them with a proposal as to how we were going to spend the funds and that is the result of the proposal you see before you. In a very short time Burdelski and the City Manager have worked on
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this and put this together and it is very painstaking and detail oriented. But fortunately we have a number of programs in place and targets that gave us a solid foundation to make such a proposal. We think our apparatus and internal structure that deals with this is very good. We have had some experience rehabbing houses using non-profit organizations that have been very successful. We think we are in very good shape to make maximum use of the dollars. Again, it has been on a fast track, it is not the normal way we do business. However, given the federal timeline on this we do need to turn this around quickly and that is why it is before you this evening and that is why we asked Ms. Burdelski to come and give you the details.
Dominello asked if the staff is going to take care of all of this and if there are going to be administrative costs. If there is, how much of this budget will be administrative? Burdelski stated the state has allocated $85,000 to the city for administrative costs so that will pay for existing staff time. It will go into our existing accounts for administration, for her work and also work out of the Department of Development and Enforcement. Then if we have a non-profit group working with us we can attach a fee to pay for those services. That can come out of the rehabilitation costs. In our proposal we have outlined no more than 6.5% for a given project. That would be about $10,000 per rehab per house for a developer or a non-profit fee. That is consistent with the city’s prior First
Time Homebuyer Program where we actually used the same approach to acquire homes through tax foreclosure that were then rehabbed and sold to first time homebuyers. We are using that same model. Dominello asked if $85,000 would be the total budget for expenses for staff. Burdelski stated yes.
McGoldrick stated there is nothing in this plan that is going to help stop foreclosures. This is simply to prevent houses that have been foreclosed on or abandoned from turning into blighted properties that would effect the rest of the neighborhood. He asked if that was correct. Burdelski stated that was correct and that was part of the federal rule. We have allocated part of the money to financial mechanisms for people to buy the homes but it can’t be used as a stop gap to stop people from going into foreclosure. There are other federal programs and other state programs that are already set up to do that such as the Connecticut Families Program. There is new legislation in the federal government that banks can basically renegotiate mortgages and that is not a part of this program.
McGoldrick stated that is an important difference that he wanted to make clear. He thinks some of the comments heard during public comment didn’t fit that distinction.
Daniels asked Burdelski when we buy a property and resell it, what happens to that money that we receive on the resale. Is this basically a revolving set of funds that we’re going to be able to continue to do this over and over again or does that money have to be returned to anyone? Burdelski stated in the prior program when the city just did these for tax foreclosures the resale money came back to the city. The state has set it up such that any profit, so to speak, would go back to the state. They have also set it up that we would be rewarded for spending the money and then they would give us another allocation of funding. Yes, there is a revolving nature to it but the revolve goes back to the state first. There is another step. Daniels asked if we buy a house for $150,000 and sell it for
$180,000, $30,000 will go to the state and $150,000 comes back to the city to purchase another property. Burdelski stated potentially. The state is going to determine how they are going to reallocate funds in the second round.
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In our proposal if we get another allocation, we’ve outlined how we will spend it and basically that will be on the continuation of the program.
Shamock asked who has the final say on demolition or rehab. Burdelski stated it would be a staff decision. We are using the model of the First Time Homebuyer process. In that process, the Housing Code division would go in and do an assessment of the repairs needed. If the repairs really exceed the marketability of that house there would be a determination whether this should be a demolition or if it is a rehab property. That is going to be determined through the implementation of the program. In our plan we only have so much money for demolition activities so we’ll be limited in actually the number of demolitions that we could do. Shamock asked if there would be a limit on how much you can spend to rehab a certain property. Burdelski stated they have proposed in the plan that we would
not spend more than $175,000 per property for an acquisition and rehabilitation project. Based on home sales and market data that she has analyzed, that should be doable. Shamock stated it should be doable but from his perspective if you’re talking to rehab a house in Meriden for $175,000 he would lower that estimate. If you rehab something in Meriden for $175,000 you’d have a problem selling it for $175,000. Burdelski stated that would include the acquisition costs. Shamock stated if the property is in foreclosure there shouldn’t be that much cost factored in. Burdelski stated they have looked at existing foreclosed properties that are on the market today, bank owned properties, and the average sale price is $100,000. That is based on about 18 properties that she has found. Rehab costs about $50,000. We can’t do every house with that budget but that is going to be our target range.
Shamock asked if staff came up with the $175,000 figure. Burdelski stated staff did and Shamock felt that is high in Meriden. He feels someone should look at that figure again. Burdelski stated that would include acquisition, rehab and the non-profit fee. This is based on the city’s prior experience. Shamock stated he has been in the business a long time and to sell a house for $175,000 after rehabbing it in Meriden, we’ve got a problem. Burdelski stated if the cost price points do not match the potential buyer there is a potential to use some of the federal funds to make the house more affordable. If we have a client that can’t afford a $175,000 house, a portion of the federal funds could be used for that affordability gap.
Kogut asked Burdelski to describe the First Time Homebuyer Program. He stated one concern that people have voiced about this program is the city will rehab these properties and they’ll be in the same position as any other buyer and have difficulty selling them. He knows the city has some other tools that would facilitate buying this type of home over another. Burdelski explained in the city’s First Time Homebuyer Program five homes were completed where the city acquired the property through a tax foreclosure. The program partnered with the Connection Fund, a non-profit based in Middletown. However at the time other non-profits were invited to participate. The title was handed over to the Connection to rehabilitate the property. CDBG funds were used to finance that. The Connection as a
non-profit group were responsible for pre-qualifying, qualifying and identifying the potential homebuyers. Right now they have told her they have a list of 40 pre-qualified buyers on their list. That has to be updated through the implementation of this process. Essentially the house was acquired and sold to the Connection. The homebuyer was identified and the home was sold to the homeowner. The city’s share of the rehabilitation was paid back, less the Neighborhood Preservation Program
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Rehabilitation Loan which stayed with the property, to again address the affordability gap. The homeowner then has a deed restriction. If the homeowner sells that property within a 10 year period at a profit, it has to pay the city back. That is how the program works. There are some tweaks to make it fit the federal rules but essentially that is the model.
Santiago stated it is her understanding that this program has gone out to bid and is going to be an RFP so the non-profits can bid for this program. Burdelski stated we have to meet all the federal requirements for procurement so we anticipate once we are approved by DECD to proceed we would issue an RPF soliciting proposals from non-profit organizations to partner with the city on that acquisition and rehab of properties.
Shamock stated he is glad Burdelski mentioned that. Shamock was not aware that they would have to pay the city back if they sold the property within ten years. He stated this is a type of forbearance loan.
Rohde thanked Burdelski and the City Manager for putting this together. It is a very complicated, detailed prospect but as you can hear there are many elements that benefit not only potential homeowners but helps with our blight situation and has a chance to turn some neighborhoods who are on the brink into some more positive environments. We think it is a great program and we are hopeful that the state and federal government who make decisions will accept it as we present it. Vote taken on motion to adopt and was carried unanimously.
Item 10. No report from Finance.
Item 11. No report from Economic Development, Housing & Zoning.
Item 12. No report from Public Works and Parks & Recreation.
Item 13. No report from Public Safety.
Item 14. No report from Human Services.
Item 15. No report from Committee of the Whole.
Item MNO21. Presented by Michael S. Rohde and Matthew C. Dominello, Sr.
Whereas, Dr. Martin Luther King, Jr. received the 1964 Nobel Peace Prize for his courage in leading the civil rights movement; and
Whereas, Dr. King believed in the character of this country and the peaceful resolution of racial and economic injustices through non-violent resistance; and
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Whereas, Dr. King inspired millions of people, black and white, to work for equal rights for all, in his “I Have a Dream” speech before a crowd of 200,000 during the August, 1963 march in Washington, which he led; and
Whereas, affectionately known as the “drum major for peace”, Dr. King gave his life on April 4, 1968, for his dream that one day all of God’s children would be free; and
Whereas, his life and supreme sacrifice and contribution to the diversity and richness of American society is celebrated each year on a day established as a national holiday in his honor; and
Whereas, January 19, 2009 is recognized as a day to honor Dr. King; now, therefore,
Be It Resolved, that the City of Meriden salutes this great man and recognizes with appreciation his contribution to all Americans.
There being nothing further to be brought before the Council, Mayor Rohde entertained a motion to adjourn. A motion was made by Keith Gordon, seconded by Matthew Dominello, and carried unanimously, to adjourn. The meeting adjourned at 7:40 p.m.
Lori N. Canney
Clerk of the City Council
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